The German automotive giant Volkswagen intends to invest nearly 16 billion Brazilian reais (about 3.3 billion euros) in the country by 2028, which is more than double what the company had previously planned to invest in the Brazilian market.

Volkswagen had previously announced plans to invest about 7 billion reais in Brazil by 2026. The Volkswagen subsidiary in Brazil announced the latest investment plans today, Friday.

Volkswagen Group intends to launch 16 new models in the Brazilian market by 2028, including hybrid and fully electric cars, according to the company.

The CEO of Volkswagen do Brasil, Ciro Pessôa Bonomo, said: "Volkswagen was the fastest-growing brand in terms of sales volume in 2023 and led the main categories of SUVs and passenger cars in Brazil last year," adding: "Now, Volkswagen reaffirms its confidence in Brazil."

The new models include a small pickup truck that will be manufactured at Volkswagen's plant in São José dos Pinhais, and a car will be entirely produced in Brazil at the Taubaté plant. A new engine for hybrid cars will be manufactured at the São Carlos plant.

Bonomo said that the investments will initially be directed towards projects to decarbonize Volkswagen's four plants in Brazil.

According to figures released by the company, Volkswagen's sales in Brazil increased last year by 29.5% to reach 345,039 vehicles.

With a market share of 15.8%, Volkswagen do Brasil ranks second after the Fiat brand of its competitor Stellantis in the South American country.

Volkswagen clarified that its Polo model was the best-selling car in Brazil in 2023.